"Companies that exploit this loophole benefit from the protections and services the federal government provides, including patent protection, research and development tax credits, national security and more; they shouldn't be allowed to shift their tax burden onto others," he added in a statement.

He said he was speaking with other senators about the legislation.

The Obama administration has previously said that it was seeking ways to end the practice.

Mr Levin is the chairman of the Senate Permanent Subcommittee on Investigations and he has previously campaigned for closing corporate tax loopholes.

He has convened panels alleging corporate tax dodging against firms such as Apple and Caterpillar.